PH banking system assets up 9%
At A Glance
- The banking system's total assets reached P23.276 trillion as of end-June 2023, up 9% year-on-year.
- Bangko Sentral ng Pilipinas (BSP) data shows that the big banks had P21.882 trillion of the total assets, while thrift banks accounts for P949.701 billion.
- Banks' assets are boosted by the expansion in deposits, loans and investments. While these continue to grow, total banking assets have not yet returned to its pre-pandemic growth level of 11%.
- For the first half period, banking system assets are mainly funded by deposit generation.
The country’s banking system reported total assets of P23.276 trillion as of end-June this year, about nine percent higher compared to same period in 2022 of P21.347 trillion, based on the latest and updated data from the Bangko Sentral ng Pilipinas (BSP).
Banks’ assets are boosted by the expansion in deposits, loans and investments. While these continue to grow, the industry total assets have not yet returned to the pre-pandemic growth level of 11 percent.
For the first half this year, total assets were mainly funded by deposit generation.
By banking group, the big banks or the 45 universal and commercial banks reported P21.882 trillion of the total assets. This was about 94 percent of the total.
The 43 thrift banks had combined assets of P949.701 billion as of end-June or more than four percent. Meanwhile, the 395 rural and cooperative banks contributed P367.304 billion but this was as of end-March 2023 due to delays in reporting.
Based on BSP data, banks’ continued strong performance can be seen in its sustained expansion in assets, deposits, and profit, as well as stable capital, liquidity buffers and ample provision for credit losses.
As of end-June, the banking system’s liabilities which are financial and deposit liabilities, increased by 8.78 percent to P20.419 trillion from P18.770 trillion same time in 2022.
Credit activity continue to improve as banks’ net loans inclusive of interbank loans receivable and reverse repurchase, increased by 8.76 percent to P12.287 trillion during the period from P11.306 trillion same time last year.
Net loans have a big contribution to total assets after investments and cash and due from banks. As of end-June, cash and due from banks posted a small uptick of 0.56 percent to P2.868 trillion from P2.852 trillion after declining for some months.
Net investments which are financial assets and equity investments, grew by 9.66 percent to P6.767 trillion from P6.171 trillion in 2022.
Meanwhile, net real and other properties acquired or ROPA rose 1.91 percent to P101.577 billion versus P99.673 billion last year.
As of end-June, banks’ cumulative net profits stood at P178.50 billion, up 24.72 percent from same period in 2022 of P143.12 billion. The combined industry net interest income rose 16.97 percent to P414.45 billion from P354.32 billion while non-interest income dropped 7.74 percent to P107.94 billion versus P117 billion previously.
Based on BSP data, in terms of assets, the SM Group’s BDO Unibank Inc. is the country’s biggest bank with total assets of P3.92 trillion as of end-March this year.
Government-owned Land Bank of the Philippines is second largest lender with total assets of P3.11 trillion followed by the Ayala-led Bank of the Philippine Islands with P2.66 trillion.
The Ty-controlled Metropolitan Bank and Trust Co. with total assets of P2.62 trillion as of end-March is fourth biggest bank while China Banking Corp., a sister company of BDO, has P1.36 trillion, in fifth slot.
The other banks in the top 10 in terms of asset size are Rizal Commercial Banking Corp., Philippine National Bank, state-owned Development Bank of the Philippines, Union Bank of the Philippines and Security Bank Corp.